Tampa Land Trust Attorney
There are a number of reasons why you may want to own real property without publicly disclosing your ownership. Fortunately, Florida law makes this possible with a land trust. By placing legal title to property with a trustee, you can still maintain active control over the land without anyone else knowing. This can also provide important estate planning benefits after you die.
If you think that a land trust might be beneficial to you, you should first seek out qualified legal advice. An experienced Tampa land trust attorney can explain the legal requirements, benefits, and potential drawbacks of these types of trusts. Knudsen Law is a full-service Florida estate and probate firm that advises clients on a wide range of trust matters.
How Does a Florida Land Trust Work?
The Florida Land Trust Act spells out the legal requirements for a land trust. In simple terms, a land trust divides ownership of the property between a legal owner and a beneficial owner. The legal owner is the trustee, while the beneficial owner is usually the grantor, i.e., the person who created the land trust.
As far as public land records are concerned, any real property held by a land trust is owned by the trustee. The beneficiary’s name never appears on any public records. And the documents creating the land trust are a private agreement between the grantor and the trustee. Unless there is litigation involving the land trust, the actual terms of the trust agreement never need to be disclosed to anyone other than the trust’s beneficiaries.
The trustee must be a different person than the grantor. That said, the trustee can be an individual, corporation, limited liability company, or any other legal entity. A land trust can also own multiple properties.
So aside from privacy, what are the actual benefits of a land trust? Here are a few examples:
- Probate: Property in a land trust is not considered part of the beneficial owner’s probate estate. This means the trustee may continue to administer the real estate, or transfer the property to a successor beneficiary, as directed by the trust documents. The property itself never passes under the terms of the deceased beneficiary’s will.
- Automatic Liens: If a creditor obtains a judgment against you in Florida, a lien is automatically recorded against any real property titled in your name throughout the state. This does not apply, however, to property held in a land trust. The creditor, however, may still be able to go after your interest in the land trust itself.
- Taxes: If a property is subject to a mortgage or other encumbrance, there is a tax imposed on the transfer of that property to a corporation or other business entity. Transferring the property to land trust instead can avoid these taxes, even if the trustee is a corporate entity.
Reach Out to a Tampa Land Trust Attorney for Help
A land trust does mean taking on additional costs to create and manage the trust. It can also be difficult to obtain a loan if you wish to purchase a property directly through a land trust. For these reasons, and more, you should always consult with an experienced Tampa land trust attorney beforehand. Contact Knudsen law today at (727) 398-3600 to schedule a consultation.
